Vacant Property Owners Could Face Higher Taxes
Amid growing, vocal frustration over dilapidated, abandoned buildings on the part of residents in neighborhoods like Shaw and Petworth, a D.C. Council committee approved a measure to double the tax rate on abandoned properties. As the Examiner notes, the move could generate millions in additional revenue while at the same time serve as an incentive for land owners to either renovate and develop their properties or sell to someone who will.
The measure, introduced as an amendment to a bill that's designed to consolidate vacant property enforcement under a single agency by Council member Kwame Brown (D-At-large), will increase the tax rate on Class 3 property from $5 per $100 of assessed value to $10 per $100.
Will it work? The Examiner cites a 1998 study by the D.C. Tax Revision Commission that suggests it might not. Considering the length of time many of these properties have been abandoned by their owners, it doesn't seem like this increase would necessarily give a speculator enough of an incentive to develop their buildings.
Former DCist editor Rob Goodspeed recently compiled a survey on his own blog of abandoned property on 9th St. NW, and explained how vacant buildings are classified as Class 3.
Photo by stgermh
The laws regulating the registration and taxation of vacant property are governed by DC ST § 42-3131.05-15 of the DC Code, which reads in part:(b) A vacant building shall not be subject to the registration and fee requirements if it is:
(1) Owned by the government of the United States or its instrumentalities;
(2) Owned by a foreign government or its instrumentalities;
(3) Under construction or undergoing rehabilitation, renovation, or repair, and if there is a valid building permit that was issued within 60 days of the required registration date; provided, that the scope of the permit is not limited to electrical or plumbing work; provided further, that this exemption shall not exceed one year from the date of issuance of the first building permit for rehabilitation, renovation or repair;
(4) In compliance with the requirements of § 42-3131.12 and the housing regulations of the District of Columbia and the owner or his agent has been actively seeking to rent or sell it; provided, that the time period for sale or rent shall not exceed one year from the initial listing, offer, or advertisement of sale, or 90 days from the initial listing, offer, or advertisement to rent; or
(5) Exempted by the Mayor, in his or her sole discretion, for good cause.
Mayor Fenty, it can be said, hasn't been one to dole out exemptions, instead pushing the DCRA to force some owners to complete repairs or face a lien. Still, some are calling for stronger measures than just a doubling of property taxes, and that a thorough, accurate database with up-to-date assessments of the status of such properties should be a higher priority to assist with the enforcement of existing laws.
The bill will still need to pass through the finance and revenue committee before it can be considered by the full Council.